Las Vegas Sands stands to benefit from the Chinese government’s new efforts to boost the nation’s economy, according to Jefferies. The investment firm upgraded shares of the casino operator to buy from hold and raised its price target to $69 from $60. The new forecast implies 38% upside from Thursday’s close. Analyst David Katz pointed to the improving gaming backdrop in Macao. The Chinese government’s recently announced monetary policy initiatives designed to improve the health of consumers will ultimately prove positive for Macao. The government announced in November a $1.4 stimulus package spread over five years. Meanwhile, room renovations in the Londoner hotel should be completed by the first half of the year, which will grow Las Vegas Sands’ revenue by 12% next year in Macao, per Jefferies. “The improving macro conditions in Macau will increase the strength of the mass segment consumer, which LVS has significant exposure to, ultimately allowing for incremental growth to its estimates in the near-term,” the analyst wrote. “Furthermore, the company is focused on upgrading properties within its portfolio while utilizing its sector-leading balance sheet to repurchase shares. The setup in Macau is ideal for LVS to gain market share in a market expected to recover to 2019 levels by 2026.” Shares of Las Vegas Sands have started the new year off with a 3% decline. They and ended 2024 with a slight 4% gain — lagging the S & P 500’s 23.3% advance. LVS 1Y mountain LVS 1Y chart Analysts are generally bullish on the casino stock. LSEG data shows that 15 of 20 analysts covering Las Vegas Sands have a buy or strong buy rating, while the remaining five rate it as a hold. The average price target also implies upside of more than 18%. Shares popped more than 2% following Jefferies’ upgrade.
Jefferies upgrades Las Vegas Sands to buy, calls for a gain of more than 35%